Should I change car now?

[Victor68]

Hi, need some advice and your rationale to see if I got my sum right.

 

I bought my Aug 2007 Stream in Jan 2012 for $55K. The OMV is $20,500+ and I understand I can get back around $11,300 if I ride it out till the end.

 

So, at that point, I was thinking my depreciation is around $7,300 per year. That is OK for a 1.8 litre car that sits 7 people. With today COE dropping and hopefully it will goes further south, it seems that should I replace it, I will enjoy a better depreciation and enjoy a new car. Of course I may not be getting back a 7 seater and 1.8 litre Honda. 

 

If I go for a $85K normal saloon car (Kia, Mazda, etc) and trade in my present car. This is my calculation.

 

Value of new car                            $85,000

Trade in current car                       $20,000   ( $11, 300 + $9K for the balance 1.5 year is very reasonable or I should get more)

                                                       $55,000

 

For the new car, if I ride out the 10 years, I am sure I should at least get back $5K. So, if I depreciate the $50K over 10 years, my depreciation for each year is $5K. Did I get this sum right?

 

On top of the above, for the balance 1.5 years, my depreciation of $7,300 is reduced to $5K per year, a saving of another $2.3K or more.

 

Of course now I got to see what $85K I can buy. Any views or advice? Thank you

[Angcheek]

Value of new car                            $85,000

Trade in current car                       $20,000   ( $11, 300 + $9K for the balance 1.5 year is very reasonable or I should get more)

                                                       $65,000

 

Note the min download payment 40% ? 

Edited March 1, 2016 by Angcheek

[Angcheek]

Hi, need some advice and your rationale to see if I got my sum right.

 

I bought my Aug 2007 Stream in Jan 2012 for $55K. The OMV is $20,500+ and I understand I can get back around $11,300 if I ride it out till the end.

 

So, at that point, I was thinking my depreciation is around $7,300 per year. That is OK for a 1.8 litre car that sits 7 people. With today COE dropping and hopefully it will goes further south, it seems that should I replace it, I will enjoy a better depreciation and enjoy a new car. Of course I may not be getting back a 7 seater and 1.8 litre Honda. 

 

 

 

you bought at 55K but dep at $7.3k per ann ? you borrow from ah long ?  

 

i dont think new car will dep lower than 07 car ...........  but I like the way u think     

[Victor68]

you bought at 55K but dep at $7.3k per ann ? you borrow from ah long ?  

 

i dont think new car will dep lower than 07 car ...........  but I like the way u think     

55k - 11k = 44K / 6 yrs = 7.3 k per yr mah? 

 

Value of new car                            $85,000

Trade in current car                       $20,000   ( $11, 300 + $9K for the balance 1.5 year is very reasonable or I should get more)

                                                       $65,000

 

Note the min download payment 40% ? 

 

I am assuming no loan for easy calculation. everything is also rounded off to the nearest thousand. 

[Angcheek]

55k - 11k = 44K / 6 yrs = 7.3 k per yr mah? 

 

then u are not comparing apple to apple ma ..........

 

This one u use "6 yrs" .... but new car u use "10 yrs" ?  cannot like that la ... must be fair fair .

 

I sala ... kekeke  

Edited March 1, 2016 by Angcheek

[Angcheek]

  everything is also rounded off to the nearest thousand. 

 

I calculated 65K and u calculated 55K ..........  waaa your round up is 10K ? 

 

unless u buying supercar over Mil. 

[flashbang]

Hi, need some advice and your rationale to see if I got my sum right.

 

I bought my Aug 2007 Stream in Jan 2012 for $55K. The OMV is $20,500+ and I understand I can get back around $11,300 if I ride it out till the end.

 

So, at that point, I was thinking my depreciation is around $7,300 per year. That is OK for a 1.8 litre car that sits 7 people. With today COE dropping and hopefully it will goes further south, it seems that should I replace it, I will enjoy a better depreciation and enjoy a new car. Of course I may not be getting back a 7 seater and 1.8 litre Honda. 

 

If I go for a $85K normal saloon car (Kia, Mazda, etc) and trade in my present car. This is my calculation.

 

Value of new car                            $85,000

Trade in current car                       $20,000   ( $11, 300 + $9K for the balance 1.5 year is very reasonable or I should get more)

                                                       $55,000

 

For the new car, if I ride out the 10 years, I am sure I should at least get back $5K. So, if I depreciate the $50K over 10 years, my depreciation for each year is $5K. Did I get this sum right?

 

On top of the above, for the balance 1.5 years, my depreciation of $7,300 is reduced to $5K per year, a saving of another $2.3K or more.

 

Of course now I got to see what $85K I can buy. Any views or advice? Thank you

 

If you drive your Stream until scrap, depreciation is (55k - 11k)/5.5 years = 8k/year

If you trade in your Stream for 20k, your depreciation for the past 4 years is (55k - 20k) / 4 years = 8.75k/year

 

By trading in now, you increased your depreciation for the last 4 years of driving by $750/year.

 

Based on overall cost:

+ 55k for Stream

+ 85k for new car

- 20k trade in price of Stream

- 5k final PARF of new car

Total cash expensed = 115k over (4+10) years = 8.2k/year average depreciation

 

So now the key is, in 1.5 years can you still get a 85k new car? If you can, then changing now will cost you more as driving your Stream another 1.5 years will cause average depreciation to drop to 8k/year.

 

If you think car prices are going to shoot up in 1.5 years then it may be a good time to switch as your loss for your Stream due to higher depreciation is only about 3k.

 

 

But if you ask me, if I know I got cash I will just change a new car 

[Angcheek]

55k - 11k = 44K / 6 yrs = 7.3 k per yr mah? 

I am assuming no loan for easy calculation. everything is also rounded off to the nearest thousand. 

 

ops sorry I missed out you bought a  07 car in 2012  

[Kia7200]

better sell ur car direct, u may get higher $$ than trade in.

 

There is 1 champion selling his fit jan08 at $30k

[Victor68]

If you drive your Stream until scrap, depreciation is (55k - 11k)/5.5 years = 8k/year

If you trade in your Stream for 20k, your depreciation for the past 4 years is (55k - 20k) / 4 years = 8.75k/year

 

By trading in now, you increased your depreciation for the last 4 years of driving by $750/year.

 

Based on overall cost:

+ 55k for Stream

+ 85k for new car

- 20k trade in price of Stream

- 5k final PARF of new car

Total cash expensed = 115k over (4+10) years = 8.2k/year average depreciation

 

So now the key is, in 1.5 years can you still get a 85k new car? If you can, then changing now will cost you more as driving your Stream another 1.5 years will cause average depreciation to drop to 8k/year.

 

If you think car prices are going to shoot up in 1.5 years then it may be a good time to switch as your loss for your Stream due to higher depreciation is only about 3k.

 

 

But if you ask me, if I know I got cash I will just change a new car 

wow thank you for the calculation. so I guess I am about even out now with a difference of a few thousands. (less than 5K?). I have also assumed my trade in as 20k which is a good deal for whoever buys it.

 

So now I know if COE drops further and 85K can buy something reasonable, maybe good to consider. Of course I know my trade in will also drop but by rebate is still stays at $11k.

[Audi2016]

The new car feel and smell is like a drug. Go for it lol.

[Vinceng]

Wise move to sell your car now and capitilise on the resale value , and target at those who want to buy used car with <2 yr left to drive, with the intended to wait for COE to dive further, which may or may not happen.

Edited March 1, 2016 by Vinceng

[kennytansk]

wow thank you for the calculation. so I guess I am about even out now with a difference of a few thousands. (less than 5K?). I have also assumed my trade in as 20k which is a good deal for whoever buys it.

 

So now I know if COE drops further and 85K can buy something reasonable, maybe good to consider. Of course I know my trade in will also drop but by rebate is still stays at $11k.

 

Now the other issue is that you are comparing Honda with Kia. Those are of different new car purchase cost and also comfort in ride.

 

You should put in the new stream cost and calculate if it is really worth it.

 

Just buy new if your budget can. Over analyse will become paralyze.

[Mr_biscuit]

wow thank you for the calculation. so I guess I am about even out now with a difference of a few thousands. (less than 5K?). I have also assumed my trade in as 20k which is a good deal for whoever buys it.

 

So now I know if COE drops further and 85K can buy something reasonable, maybe good to consider. Of course I know my trade in will also drop but by rebate is still stays at $11k.

 

In addition to all calculation of depreciation, something which cannot be calculated is the loss of 1.5 years of downgrade of 1.8L 7 seater to a 1.6L 5 seater saloon.

 

I'm in the same scenario like you too driving a Apr 2007 Kia Carens.

Keep asking myself should I change or drive till scrap, and since last Nov keep monitoring CAT A and CAT B prices, and new car prices.

 

As my 9th year is nearing, my decision is either Mar 2016 change or drive all the way to maximise out the current car ride paper value and road tax.

I threw in the white towel when the CAT B COE drop till $38K, and keep a lookout at Kia Carens, Toyota Wish and Mazda 5 prices 2 days later.

 

Ending up with the purchase of Mazda 5, and awaiting for my 2nd COE bidding.

 

I personally feel that you can continue to monitor till end June 2016 and decide; or drive till scrap.

 

Cheers.

Edited March 1, 2016 by Mr_biscuit

[Victor68]

In addition to all calculation of depreciation, something which cannot be calculated is the loss of 1.5 years of downgrade of 1.8L 7 seater to a 1.6L 5 seater saloon.

 

I'm in the same scenario like you too driving a Apr 2007 Kia Carens.

Keep asking myself should I change or drive till scrap, and since last Nov keep monitoring CAT A and CAT B prices, and new car prices.

 

As my 9th year is nearing, my decision is either Mar 2016 change or drive all the way to maximise out the current car ride paper value and road tax.

I threw in the white towel when the CAT B COE drop till $38K, and keep a lookout at Kia Carens, Toyota Wish and Mazda 5 prices 2 days later.

 

Ending up with the purchase of Mazda 5, and awaiting for my 2nd COE bidding.

 

I personally feel that you can continue to monitor till end June 2016 and decide; or drive till scrap.

 

Cheers.

Can you share what makes you decides on Mazda instead of Wish since you are already driving a Carens. For me, the Wish and Mazda look very similar to my Stream. Was hoping something that will look a bit different. Seinta and Freed are 2 but both PI.

[Lsm_83]

If you can afford to wait, i would suggest you to offload your car first and wait a couple of months to see the trend of the coe.

 

I foresee the coe will dip to around 28 to 30k range for both cat a & b. by end of this year.

 

Now the dealer are offering lower price for your used as compare to 3 months ago due to the COE  sudden dip.

[13177]

What new car can you buy for around 85K now? Attrage, Almera, K3 or Accent?!

[Vinceng]

What new car can you buy for around 85K now? Attrage, Almera, K3 or Accent?!

Almera for fuel economy and interior space. But not for the looks.